Markets Where Localization Strategy Can Help You Win

May 8, 2017 Nicole Post

There’s a lot that goes into developing an app. First, you spend a significant amount of time trying to construct a business case. Next, you spend months making sure of your requirements and finding the right people to work on the project. It’s only after that you actually begun working on the app, which involves another series of sleepless nights.

Since you’re putting so much effort into developing your app, wouldn’t you want to make sure that your ROI is worth the effort? Of course, you do and one way to make that happen is by expanding into newer markets; to be more specific, foreign markets.

Why?

Well, global app revenue is expected to reach $101.1 billion by 2020 and a significant chunk of that growth will be driven by international markets. To put it simply, an international market is where the action is. Now, choosing the right market for your app localization strategy would depend on your own business objectives and requirements.

However, to make things easier, we’ve listed a few countries here that are ripe with opportunity as far as app localization goes.

China

China is currently second in the world for mobile app downloads and number 3 in terms of mobile app revenue. By 2020, the number of mobile devices in China is likely to touch 880 million and the country will account for one-third of global app downloads.
China’s growth in the app market has been making headlines. The country is a hot destination for iOS apps. In fact, it leads in iOS app downloads. In 2015, China’s iOS app downloads had literally doubled in comparison to 2014.

However, it’s not the same with Android, thanks mainly to the absence of Google Play. Even so, things are looking bright on that side of the fence too. For instance, Chen Xudong, Motorola Mobility Chairman, and Lenovo Executive is reportedly negotiating with the Chinese government to bring in Google Play. Google has also stated that it might work on a regional version to comply with the country’s regulations.

Anyway, the key point here is that China is a market you should consider as part of your app localization strategy. The country is a juggernaut as far as this area is concerned. Around 80% of its mobile connections will be made up of smartphones and tablets by 2020.

India

App market growth in India can only be described as “aggressive”. The country currently ranks number 4 in terms of mobile app downloads. Predictions suggest that, by 2020, smart devices will account for 54% of the country’s mobile connections.

The number of Android app downloads alone has grown by 50% in 2015 and the average India is more than open to mobile commerce.

India has managed to overtake the UK, the US, and Japan in-app download volume and growth, especially with regard to its ten most popular retail apps. What’s even more interesting is the fact that 6 of these apps are mobile-only businesses i.e. they don’t operate brick and mortar establishments at all.

However, there is one challenge that you might have to face in the Indian market, which is competition from local apps. Local apps dominate the market here and foreign brands have had a tough time finding their niche.

Needless to say, you’ll need to craft a clever and aggressive localization strategy if you want to make inroads here. On the other hand, you could try creating a completely new market because the current scenario makes India viable for a penetration strategy.

Other Countries to Look Out For

Apart from China and India, you could also consider Japan, Brazil, South Korea, Germany, and Spain. These countries have also been making the headlines with regard to their respective app markets.